Tencent Reports Gaming Division Revenue Twice as Large as NetEase’s Total Income in Q1 2025

Tencent’s gaming division earned twice as much in Q1 fiscal year 2025 as NetEase’s entire business, according to recently released financial reports of the two Chinese companies.

As for Tencent, in the first three months of 2025, the company generated about $25.1 billion, showing a 13% growth. Its net profits reached approximately $6.9 billion, reflecting a 17% increase, while its gross profits reached about $14 billion due to the 20% growth.

Showing a 23.7% year-over-year increase, games generated 33% of Tencent’s revenue, which is about $8.2 billion. For comparison, NetEase’s revenue during the same period was less than half, amounting to approximately $3.97 billion.

Tencent’s game sales in China amounted to approximately $5.95 billion, showing a 24% growth, achieved mostly due to the performance of Honor of Kings, Peacekeeper Elite, Dungeon & Fighter Mobile and Delta Force. Meanwhile, the company’s game sales in the international market rose by 23% to a sum of about $2.3 billion. The main drivers of Tencent’s success in the market outside China in Q1 FY2025 were Brawl Stars, Clash Royale and PUBG Mobile.

Tencent highlighted that it is satisfied with the success of Delta Force, noting that in April 2025, the game’s daily active audience in China alone reached 12 million people and became the sixth most popular game in the domestic market.

It is worth noting that Tencent is considered the world’s largest company in the video game industry based on its equity investments.

As for NetEase’s quarterly report, the company saw an increase in all key metrics and confirmed that its gaming division remains the most profitable.

According to the report, NetEase’s net profit increased to about $1.45 billion, showing a 35% increase. Gross profits rose to approximately $2.5 billion, featuring an +8.6% growth. NetEase’s revenue, as previously mentioned, reached a sum of about $3.97 billion, reflecting a 7.4% increase.

The gaming division contributed 83.4% of NetEase’s quarterly revenue, generating about $3.3 billion, showing a 12.1% growth, with gross profits from games at approximately $2.3 billion, which reflects an 11% growth. According to NetEase, the growth can be attributed primarily to Identity V, Marvel Rivals and the Chinese version of Where Winds Meet.

NetEase continues to reintroduce Blizzard Entertainment games in China, which had its operations paused in the country in 2023. The company has already resumed operations for World of Warcraft, Hearthstone, Overwatch 2 and several other games and is currently working on bringing Diablo III back. Besides that, according to NetEase, the Chinese version of Overwatch 2 recently set a new online record. However, the exact number of simultaneous players was not disclosed.